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Question - In general, the government has economic influence on different levels of economic activity. The government has a role to regulate, improve or defeat the economic activities of the government and the private sector. In carrying out its role, the government has encountered several failures to carry out its functions.
Market failure refers to a condition where the market mechanism does not work, thus creating inefficiency in the market. Demand, supply and price are not in equilibrium. As a result, markets fail to allocate economic resources in the most efficient way. Based on the data above, give your analysis regarding:
Required -
a. A description of the conditions and impact of a market failure?
b. What are the causes of market failure?
c. How did the government intervene and the government's role in overcoming the market failure?
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